This publication contains state and territory estimates of gross domestic product (referred to as gross state product (GSP)) and its components, in current price and chain volume terms, for the years 1993-94 to 2001-02. Historical data starting in 1989-90 are available electronically through the subscription service, AusStats, or as individual spreadsheets.

REVISIONS IN THIS ISSUE

The estimates contained in this issue have been compiled following a new strategy for the incorporation of annual supply and use benchmarks. The new strategy was outlined in a feature article presented in the March quarter 2002 issue of Australian National Accounts: National Income, Expenditure and Product (cat. no. 5206.0). The major change is to separate the compilation of the annual supply and use tables and their introduction (along with other annual data) into the national accounts from the compilation of the quarterly accounts. Consequently, where equivalent comparisons can be made, the estimates in this issue are not consistent with those released in the June quarter 2002 issue of 5206.0.

The estimates in this issue incorporate new and revised estimates from the annual supply and use tables for 1998-99, 1999-2000 and 2000-01, and from other sources which normally become available by this time each year. The revised annual supply and use tables contain revisions to the contributions of each industry. Although this has not had a large impact on aggregate GDP movements for Australia, because the structure of economic activity varies across states there are revisions to GSP for each state in response to the industry changes at the Australia level.

The levels and growth rates of mean population have been revised following the release of the 2001 Population Census results. This has led to revisions from 1996-97 onwards to those estimates presented in per head of mean population terms.

CHANGES IN THIS ISSUE

New measures have been incorporated for real gross state domestic income (RGSDI) and real gross state domestic income per head of mean population. Estimates are presented in tables 6 and 7. These series adjust the state level chain volume estimates of GSP for changes in each state's terms of trade, thus providing a more accurate reflection of the purchasing power of a state's production. A discussion of RGSDI and preliminary estimates were published in the March quarter 2002 issue of Australian National Accounts: National Income, Expenditure and Product (cat. no. 5206.0).

DATA VALUES AND ROUNDING

All values, unless otherwise indicated, are shown in Australian dollars rounded to the nearest million.

Where figures have been rounded, discrepancies may occur between the sums of the component items and totals.

The estimates of gross state product (GSP) chain volume measures included in this publication are regarded as ‘experimental’. The reasons are set out in the explanatory notes. Users should therefore exercise caution when using these estimates for economic analyses.

The table below compares annual rates of growth in experimental estimates of GSP chain volume measures and GSP chain volume measures per head of mean population over the ten years 1991-92 to 2001-02.

Over this period, growth in GSP chain volume measures varied considerably between the states, with growth being strongest in Queensland and Victoria and weakest in Tasmania and South Australia. The dispersion of growth rates was less, but still significant, in terms of GSP chain volume measures per head of mean population.

GSP PER HEAD OF MEAN POPULATION (RATIO TO AUSTRALIA)

The graphs below show an index of GSP, in current prices, per head of mean population for each state and territory divided by the Australian estimate for total gross domestic product (GDP) per head of mean population, for the period 1990-91 to 2001-02. It should be noted that GSP per head of mean population cannot be equated with the income of households in a particular state-see comments on gross household disposable income below.

GSP per head of mean population in 2001-02 was above the national average in New South Wales, Victoria, Western Australia, the Northern Territory and the Australian Capital Territory. The Australian Capital Territory had the highest level in each of the years from 1991-92 to 1999-2000, while the Northern Territory had the highest level in 1989-90, 1990-91 and in the latest two years. GSP per head of mean population in Queensland, South Australia and Tasmania has not exceeded the national average during this period. All states except New South Wales, Western Australia and the Northern Territory experienced an increase in this ratio in 2001-02.

REAL GROSS STATE DOMESTIC INCOME

The chain volume estimates of GSP measure the volume of goods and services produced in each state. If the terms of trade for a state change significantly (i.e. the prices for a state's exports and imports change at different rates) then chain volume GSP will not accurately reflect the change in real purchasing power of the income generated within a state. For this reason a new measure, real gross state domestic income (RGSDI), has been developed which measures chain volume GSP adjusted for changes in the terms of trade. This new measure was introduced in a feature article published in the March quarter 2002 issue of Australian National Accounts: National Income, Expenditure and Product (cat. no. 5206.0). (For details on the calculation method see the Explanatory Notes, paragraphs 35 to 37).

The following graphs show percentage changes in RGSDI per head of mean population over the period 1992-93 to 2001-02. Generally the pattern of growth for each state and territory reflects the pattern of growth in GSP. However, there are some notable differences in some years for some states, particularly for Western Australia and the Northern Territory.

INDUSTRY COMPOSITION OF TOTAL FACTOR INCOME

Individual industry contributions to total factor income for 2001-02 are shown below. In line with long term trends, there has been a shift from goods producing industries to service providing industries over the period 1989-90 to 2001-02.

The main industries contributing to the relative decline in goods producing industries have been: agriculture, forestry and fishing; manufacturing; and electricity, gas and water supply. Service industries, except for wholesale and retail trade, have increased in relative importance in most States. One significant exception to this trend in recent years has been the increased importance of mining in the Northern Territory such that it now represents 24% of total factor income compared to 13% in 1998-99.

INDUSTRY CONTRIBUTION TO TOTAL FACTOR INCOME(a)-2001-02

NSW

Vic

Qld

SA

WA

Tas

NT

ACT

Aust

%

%

%

%

%

%

%

%

%

Agriculture, forestry and fishing

3

4

5

8

4

6

4

-

4

Mining

2

2

8

3

21

2

24

-

5

Manufacturing

12

14

10

14

9

14

4

2

12

Electricity, gas & water supply

2

3

2

2

3

6

1

3

2

Construction

6

6

7

6

7

5

7

7

6

Wholesale trade

6

6

6

5

5

4

2

2

5

Retail trade

5

5

7

5

5

6

4

4

5

Accommodation, cafes and restaurants

3

2

3

2

2

3

3

2

2

Transport and storage

5

4

5

4

5

5

4

2

5

Communication services

3

4

3

2

2

3

3

2

3

Finance & insurance

9

8

5

6

4

6

3

4

7

Property & business services

14

13

9

9

10

6

9

14

12

Government administration and defence

3

3

4

3

2

5

9

27

4

Education

4

5

5

6

4

5

5

5

5

Health and community services

6

6

6

8

6

9

6

6

6

Cultural and recreational services

2

2

2

2

1

2

2

3

2

Personal and other services

2

2

3

3

2

3

2

3

2

Ownership of dwellings

12

9

8

9

6

9

5

8

9

General government(b)

2

2

3

2

2

3

3

5

2

Total

100

100

100

100

100

100

100

100

100

- nil or rounded to zero (including null cells)(a) Industries may not add to total due to rounding differences.(b) State details for general government gross operating surplus by industry are not available.

GROSS HOUSEHOLD DISPOSABLE INCOME

The analysis of GSP per head of mean population above concentrates on the level of economic production (GSP) and its growth in current price terms. It does not provide a measure of incomes received by residents of a particular state, because a proportion of income generated in the production process may be transferred to other states or overseas (and conversely income may be received from other states or overseas). Gross household disposable income per head of mean population in 2001-02 is shown below.

GROSS HOUSEHOLD DISPOSABLE INCOME PER HEAD OF MEAN POPULATION-2001-02

$

New South Wales

25,502

Victoria

25,066

Queensland

21,535

South Australia

21,961

Western Australia

23,931

Tasmania

19,536

Northern Territory

25,628

Australian Capital Territory

34,325

Australia

24,226

Gross household disposable income per head of mean population was highest in the Australian Capital Territory and lowest in Tasmania. Differences between the states reflect differences, from state to state, in the impact of a range of factors including the average level of compensation of employees received per employee, the proportion of the population in employment, the age distribution of the population, and differences in the level of dwelling rent (including that imputed to owner occupiers). For example, a significant reason for the high level of gross household disposable income per head of mean population in the Australian Capital Territory compared with other states is that the labour force participation rate is much higher there than in the rest of Australia.

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